Foreign Relations of the United States, 1949, The Near East, South Asia, and Africa, Volume VI

501.BB Palestine(E)/11–249: Telegram

The Secretary of State to the Legation in Lebanon

confidential

Washington, November 2, 1949—7 p. m.

669. Esmis 29. [To Clapp.] Dept analyzes current situation re economic development and refugee problem NE as fol:

(1) PCC created ESM for purpose examining economic situation arising from recent NE hostilities and recommending (a) means of overcoming economic dislocations; (b) reintegrating refugees into economic life of area; and (c) creating economic conditions conducive to permanent peace.

(2) Dept fully appreciates practical difficulties and political complications which have confronted you and congratulates you on ESM’s progress. It seems clear, however, that Israel is unwilling to consider repatriation of refugees except in limited numbers and only in context of final political settlement with Arab states. There seems no prospect of latter at present time. Arab states are unwilling, except in case of desert-poor Jordan, formally to consider extensive resettlement of refugees or to accept resettlement in return for international assistance for economic development. In other words existing impasse does not show signs of yielding to economic approach.

(3) Proof for this conclusion may be found in increasing emphasis which ESM has been forced to place on direct relief and work relief at expense of plans for long-range development.

(4) Dept does not believe present attitude Israel re repatriation, Arab states re resettlement is one on which UNGA or individual UN members including particularly US can base constructive future planning for development. ESM program drawn up principally in terms of relief and work relief with only passing reference to development will not in our view commend itself to GA, Congress, Parliament or any other legislature. GA would be confronted with necessity of voting for further voluntary contributions with no assurance of definite date of termination of relief or of integration of refugees into economic life of area. US, as one UN member, would be faced with difficult problem of requesting Congress for direct relief and work relief appropriation, possibly approximating sixteen million for 1949, without assurance of Israeli and Arab cooperation in permanent settlement of refugee problem. Dept cannot approach Congress on this basis.

(5) Dept is accordingly of opinion ESM, subsequently backed by US, UK, France, Turkey and other like minded UN members, shld embark on course of action outlined below. Altho concessions shld be made insofar as possible to sensibilities both parties in matters of form, recommendations shld be directed to solution basic problems without being overly influenced by opposition expected; otherwise intransigence of both sides will only be encouraged.

(A) ESM shld inform GA of results of its investigations in NE and shld make complete set of recommendations to GA on basis ESM terms of reference, ESM’s own experience in NE and such technical reports as are now available to ESM, particularly those relating to central Palestine, Jordan and Syria. ESM will then be in position of having outlined problem to GA on technical economic grounds only and not based on any political factor. Recommendations may well include such matters as resumption trade, flow of oil, repatriation and resettlement, which will give this Govt basis for future diplomatic approaches on these questions.

(B) It will thereafter be possible for GA to study report and to determine what action it will recommend to Israel and Arab states and other UN members on economic grounds.

(C) Individual UN members will then have full opportunity of considering Israeli and Arab reactions to ESM report and of deciding what assistance they may be able to extend. US, UK, France and Turkey wld be able more realistically to formulate their concept of NEDA and whether it shld be advanced during or after GA.

(D) US wld have before it balanced ESM report, GA debate, Israeli and Arab reactions and UN recommendations on which constructive relief and long-range development plan cld be projected for presentation to Congress.

(6) Dept believes GA might establish organizational structure along fol lines:

(a) UN agent to have coordinating responsibility for various UN activities relating to Palestine including conciliation, relief, and economic planning and development. Latter to be carried out by agency suggested in (d) below.

(b) PCC to continue conciliation.

(c) UNRPR to continue relief.

(d) Agency to be established for economic planning and development (NEDA).

Realize you may not wish make direct proposal concerning conciliation machinery, but your recommendation cld be based on assumption of need for continuing UN conciliation activities.

Foregoing has merit of keeping all activities within UN framework and at same time of maintaining flexibility under SYG for independent or concerted action of component agencies. ESM report wld not stress connection between political and economic activities.

(7) Cordier and Bunche, with whom McGhee has discussed current Palestine situation in general terms, agree ESM and subsequently UN shld take decisive action on basic issues at this time along lines suggested.

Dept wld appreciate ESM views soonest.¹

Acheson

1. This telegram was repeated to London, Paris, Ankara, and New York, the last for the American Delegation to the Palestine Conciliation Commission.

   Mr. Sheringham advised on November 7, that the Foreign Office was in substantial agreement with the Department’s thinking as revealed in this telegram and that remaining differences were tactical and readily resolvable. The Foreign Office still had reservations concerning the UN Agent (see paragraph 6a and London’s telegram 4389, November 2, p. 1462) and was of the opinion that the establishment of NEDA should be postponed until after the current session of the General Assembly in order to gauge the reactions of the General Assembly and the Middle East countries (telegram 4459, November 7, 4 p. m., from London, 501.BB Palestine(E)/11–749).